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Which of the Following Is TRUE of Fiscal Federalism

Question 12

Multiple Choice

Which of the following is TRUE of fiscal federalism?


A) The proportion of the gross domestic product spent by state and local governments has grown more rapidly than the proportion of the GDP spent by the national government
B) The proportion of the gross domestic product spent by state and local government has grown less rapidly than the proportion of the GDP spent by the national government.
C) States and localities spent 7.4 percent of our GDP in 1929; today they spend even less.
D) Block grants are the main source of federal aid to state and local governments.
E) Unlike the federal government,federal courts do not have the ability to impose mandates on state governments.

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